10 Facts About the Thai Baht

Fascinating landscapes, paradise beaches and iconic dishes — Thailand is a country of many facets that attracts millions of foreign visitors each year. Behind these undeniable attractions also lies a currency with a fascinating history: the Thai baht (THB).

Are you curious about this currency and looking for key information about the THB? In this article, discover 10 essential facts about the Thai baht: its origins, influence on foreign exchange markets, impact on tourism, and more.

1. A Currency with Ancient Roots

The origins of the Thai baht date back to the era of the Kingdom of Siam, the former name of Thailand.

At the time, currencies took the form of small silver pellets. It was not until 1860, under King Rama IV, that the first coins and banknotes were introduced in Thailand.

Source: Corporate Finance Institute

2. An Officially Decimal Currency Since 1897

The Thai baht in coin form was officially introduced in 1897. In fact, coin presses were gifted to King Rama IV in 1850 and were later used to mint Thailand’s first modern coins.

Formerly known as the “Tical”, the coin was made of 15 grams of silver. The name “baht” directly refers to its weight — it’s a term used to indicate a mass equivalent to 15.244 grams. This commonly used name was officially adopted in 1940, one year after the country changed its name from Siam to Thailand. From then on, the currency became known as the “Thai baht”.

One baht is divided into 100 satang, and the following coins and notes are in circulation:

Coins:

• 1 satang

• 5 satang

• 10 satang

• 25 satang

• 50 satang

• 1 baht

• 2 baht

• 5 baht

• 10 baht

Banknotes:

• 10 baht

• 20 baht

• 50 baht

• 100 baht

• 500 baht

• 1,000 baht

It’s worth noting that the 10-baht coin closely resembled the 2-euro coin when the latter was introduced in 2002. Some European vending machines confused the two, leading to adjustments in their mechanisms to avoid the mix-up.

Source: Wikipedia

3. A Design Influenced by National History and Royalty

Thai banknotes and coins feature designs that highlight the reigning monarch’s portrait, along with national landmarks and iconic landscapes.

For example, Thai coins display the image of King Rama IX on the front and a Buddhist temple on the reverse.

4. One of the Most Secure Banknotes in Asia

Numerous security features have been incorporated to ensure the authenticity of Thai banknotes, such as holograms, colour-shifting ink, and watermarks.

Textured printing has also been adopted to help visually impaired users handle the notes more easily.

As a result, the baht is recognised for the high quality of its printing and the complexity of its security measures.

Source: Bank of Thailand

5. The Baht Adopted a Floating Exchange Rate in 1997

The baht’s exchange rate is now determined by market supply and demand — a floating exchange rate system.

This change came after the 1997 Asian financial crisis, during which the baht was devalued by around 50%. The move to a floating exchange rate was part of the recovery strategy.

6. A Key Player in Asian Forex Markets

Thailand’s strong economy has made the THB one of the most traded currencies in Southeast Asia. In fact, the baht is ranked among the top 25 most traded currencies globally on the Forex market.

7. A Currency Favoured by Foreign Investors

The THB has maintained relative stability over the past several years and continues to attract strong interest from international investors. Since 1998, the exchange rate against the US dollar has generally ranged between 30 and 40 THB.

Since the beginning of 2025, the Thai baht has gained strength. In May, 1 USD was equivalent to approximately 32 THB. Foreign investors made net purchases exceeding 70 billion baht in Thai debt instruments between January and May.

Source: Nation Thailand

8. A Currency Influenced by Tourism

Tourism plays a major role in Thailand’s economy, a role that continues to grow, according to a report from the Bank of Thailand.

With tens of millions of visitors each year, tourism accounted for around 18% of the country’s GDP in 2019. Although the COVID-19 pandemic led to a steep drop in tourist numbers, the sector saw a strong rebound in 2024 with approximately 35.5 million international tourists.

9. A Digital Baht in Development

While card payments are widely accepted in Thailand’s major cities, cash remains the primary method of payment in rural areas and for everyday expenses like taxis or market purchases.

Several countries — including China, Sweden, and France — are developing their own central bank digital currencies. Thailand is also moving in this direction and will soon offer a digital currency to its citizens.

Issued by the Bank of Thailand, this Central Bank Digital Currency (CBDC) will have the same value as physical cash — 100 baht in cash will equal 100 digital baht.

Source: Siam Commercial Bank

10. A Currency Used in Some Neighbouring Countries

Given Thailand’s regional influence, the Thai baht is accepted in several neighbouring countries such as Cambodia, Laos, Malaysia, and Vietnam.